What Is Business (Shop) Insurance in Turkey and What Does It Cover?
Business insurance — officially the business package policy (işyeri paket sigortası) — protects commercial premises such as shops, offices, warehouses, workshops and factories, and the values inside them. It is also known as shop insurance. With a single policy you can protect not only the building, but also the machinery, the goods on the shelves, electronic devices and the cash in the safe.
A single event such as a fire, burglary or flood can put years of work and capital at risk overnight. This guide explains what business insurance covers, which extras can be added, what it does not cover and what determines the price.
- Business insurance is not compulsory, but it is the most basic way to protect your business capital.
- Building, fit-out, fixtures, machinery, stock and the safe can be insured in one policy.
- Fire, theft, flooding, earthquake and broken glass are the main covers; loss of profit and public liability can be added.
- Setting sums insured at real value matters: too low a sum means too low a payment after a loss.
Contents
1. What Is Business Insurance and What Does It Do?
Business insurance keeps a business financially on its feet when something unexpected happens to its premises. Depending on the policy, it covers not only physical damage, but also lost income when work stops and damage caused to others.
| Value | Example |
|---|---|
| Building | Walls, roof, fixed installations (if you own the building) |
| Fit-out | Suspended ceilings, flooring, shop window, counter and fixed furniture |
| Fixtures and machinery | Desks, shelves, computers, cash register, kitchen equipment, production machines |
| Stock | Goods for sale, raw materials, inventory |
| Safe contents | Cash and valuable documents in the safe (with a limit) |
How does business insurance protect your business?
In three main ways: it protects your capital, your liability towards customers and neighbours, and the continuity of your business.
| Situation | What the insurance does |
|---|---|
| A fire broke out or a burglar broke in | Damage to the building, stock and fixtures is paid within the policy limits |
| Your sign fell and damaged a customer’s car | Compensation is paid under the third-party liability cover |
| A fire spread to the shop next door | Damage to neighbours is covered by the liability covers |
| The shop stayed closed because of damage | Your lost income can be covered by loss of profit and loss of rent cover |
Is business insurance compulsory?
No. Under Insurance Law No. 5584, business insurance is not compulsory and there is no penalty for not having it. But in an uninsured business, the owner pays for all the damage; and if the premises become unusable, income stops too. If you have a business loan, the bank may require business insurance. Also, DASK is compulsory for shops and offices inside residential buildings.
Which businesses can get business insurance?
Any commercial premises: shops, stores, offices, warehouses, workshops, restaurants, cafés, hairdressers, pharmacies, markets, small manufacturers and factories. The owner of the premises can insure the building and its contents; a tenant business can insure its own fit-out, fixtures and stock.
2. Main Covers of Business Insurance
Although cover varies between insurers, the main covers are generally the same. When taking out a policy, it is important to choose the right covers for your business.
What does business insurance cover?
- Fire, lightning and explosion, and smoke damage from fire
- Earthquake (for the contents; building earthquake cover is an extra)
- Internal water (burst pipes, leaks), floods
- Theft, including theft of the safe contents
- Strikes, lockouts, riots, malicious acts and terrorism
- Storms, landslides and subsidence
- Broken glass in doors, shop windows and frames
- Impact by land vehicles and aircraft
- Damage to electronic devices
- Debris removal costs
- Personal accident cover for accidents at the workplace
Not every package needs all of these covers; we choose them together according to your business activity.
What should you watch out for with theft cover?
Theft cover usually applies to burglaries with forced entry; the incident must be reported to the police and a report obtained. Cash and valuable documents in the safe are covered up to a set limit. Security measures such as an alarm, cameras, roller shutters and a steel safe reduce both the risk and the premium.
3. Business Insurance Extras
In addition to the main covers, the following can be added depending on your business’s needs. Extras are what really make the difference between two policies at the same price.
What are loss of profit, loss of rent and business interruption covers?
If your premises stay closed after a fire or other damage, the insurer can pay, under the policy terms, the profit you could not earn (loss of profit), the rent you could not collect (loss of rent) and your ongoing fixed costs during that period. For a business, work stopping can be as big a loss as the damage itself.
What liability covers are there?
- Third-party liability: damage to customers, passers-by or neighbours. For details, see our public liability guide.
- Employer’s liability: compensation claims against the employer after an employee’s work accident.
- Owner’s liability: damage caused by the building, as its owner.
- Fire liability: damage to neighbouring businesses or the landlord from a fire that starts in your premises.
Other extras
- Building earthquake (the part above the DASK limit, and commercial buildings outside DASK)
- Machinery breakdown: sudden, unforeseen breakdowns of machines
- Fidelity guarantee: losses from employees abusing the business’s trust
- Theft of fixed assets of the building
- Legal protection: lawyer and court costs in disputes about the premises
4. What Does Business Insurance Not Cover?
Excluded risks are set by the general conditions. The following are not covered by business policies:
Which situations are excluded?
- Seizure of, or measures on, the insured values by public authorities
- War and military action
- Nuclear and radioactive leaks
- Damage caused by low pressure (vacuum)
- Insured goods burning or overheating by themselves without a fire
- Damage due to poor maintenance, ageing and wear
We check the exclusions and excesses together before you buy.
Why does underinsurance matter for a business?
If the building, fixtures or stock are insured below their real value, claims are reduced in the same proportion. For example, if stock worth 1,000,000 TL is insured for 500,000 TL, only half of a 100,000 TL loss is paid. Businesses whose stock rises at certain times of year should update the sums regularly.
5. Business Insurance Price and Information Needed
The price of business insurance is different for every business; a jeweller and a stationery shop have different risks and premiums. Since insurers can give different prices for similar cover, comparing quotes is important.
What determines the price of business insurance?
- The business activity and its level of risk
- The province, area and earthquake risk of the location
- The floor, the age of the building and the type of construction
- Security measures such as alarms, cameras and roller shutters
- The sums insured for building, fixtures and stock
- The extras chosen and their limits
What information is needed for business insurance?
- For sole traders, the Turkish ID number (or foreigner ID number); for companies, the tax number and trade name
- The full address of the premises and the business activity
- Building value (if you own the building)
- Values of fit-out, fixtures, machinery and stock
- Measures taken against theft and fire
When is compensation paid?
After a loss, the insurer appoints a loss adjuster to assess the damage. Once the required documents are complete, compensation is usually paid within 1 month under the general conditions. Reporting the loss at once, taking photos and taking reasonable steps to stop the damage getting worse speed up the process.
6. Frequently Asked Questions About Business Insurance
Is business insurance compulsory?
No, under Insurance Law No. 5584 it is not compulsory. However, a bank may require it if you have a business loan, and DASK is compulsory for business units inside residential buildings.
Is shop insurance the same as business insurance?
Yes. Shop insurance is the everyday name for the business package policy.
I rent my premises. Can I get business insurance?
Yes. Tenant businesses can insure their own fit-out, fixtures and stock; insuring the building is the landlord’s responsibility.
Does insurance pay if my business is burgled?
If your policy has theft cover, stolen goods and damage from a burglary with forced entry are paid within the policy limits. You must report it to the police.
Is my lost income covered if my shop has to close?
If loss of profit or business interruption cover has been added, your lost income while closed because of an insured loss is covered under the policy terms.
What happens if a customer is injured at my shop?
If your policy includes third-party liability cover, the customer’s compensation claim is covered within the policy limits.
Can the cash in the safe be insured?
Yes, with safe contents cover, cash and valuable documents in the safe can be insured up to a set limit.
How long does it take to receive compensation?
Once the damage is assessed and documents are complete, it is usually paid within 1 month under the general conditions.
What does the price of business insurance depend on?
The business activity, location, building features, security measures, sums insured and the extras chosen.
Covers, limits and excesses vary by insurer and by the business activity. This page is for general information; contact us for a quote for your business.
The right business insurance for your company
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We set the sums insured and covers for your business together, and compare quotes for you.